This time, the occupiers say they won't go into the tents during the day and will take them down every night at 11 p.m. as to comply with city rules that disallow camping, according to the newspaper. City officials say that tents of any kind constitute camping and that they must ergo go, setting the stage for a showdown.

San Jose officials had offered to drop all charges levied against protesters since Oct. 2 if they pledged not to set up tents near city hall for two years, the newspaper said. That deal, clearly, is off -- as the group's own lawyers say this latest tactic is a way to work within and without the system simultaneously.

Meanwhile, the movement continues to demonstrate against banks, staging weekly marches through the city's financial district to raise awareness about continuing foreclosures, such as the one Bank of America is pursuing against David Ledesma's 89-year old father, he told the newspaper.

"We've never gone anywhere -- we're still doing these actions," said protester Shaunn Cartwright, who acts as an unofficial spokeswoman for the movement.